Options Action: Traders Bullish on Nucor

Options traders are showing bullish activity Monday in Nucor, the U.S.' largest recycler of steel scrap, which is down 70 percent from its summertime high.

The average daily volume of calls trading in the last 30 days has been 8,200 contracts, but in today's session more than 14,300 calls changed hands by midday alone. OptionMonster's tracking systems also point to a very large bull call spread that is trading in NUE at the January 32.50 and January 40 strikes.

Complete Nucor Options Chain

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Nucor shares reached a high of $83.56 in June but hit a fresh 52-week low of $25.25 last Thursday. Since then, however, it has rallied nearly $6 off that low with the help of an 8 percent pop today.

____________________________Nucor Industry Peers:

Commercial Metals

United States Steel

Arcelor Mittal

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Jon 'DRJ' Najarian is a professional investor, CNBC contributor, and cofounder of OptionMonster.